HP licks its wounds after yet another sluggish quarter as its PC, software and enterprise businesses slump, although it beats analyst expectations.
Hewlett Packard first quarter to Jan. 31, 2013. net revenue fell 6% to $28.4 billion (down 4% when adjusted for currency effects), although the results beat analyst expectations.
The No. 1 PC maker’s net income fell 16 percent to $1.23 billion, earnings also fell 12% to $1.6bn.
Revenue in its Personal Systems division, which includes its desktop and notebook business, was down 8%. PCs were down 5%, overall Notebooks slumped 14%, although Desktops did rise 10%.
Whitman admitted “there’s still a lot of work to do to generate the kind of growth we want to see, our turnaround is starting to gain traction as a result of the actions we took in 2012 ” which included cost cutting and laying off staff.
And lets not forget troubled HP was quick to throw a dig at rival Dell who last month went private warning:
“Dell has a very tough road ahead,” and “with a significant debt load, Dell’s ability to invest in new products and services will be extremely limited,” HP said.
The PC giant pledged “plans to take full advantage” of the changes at Dell, and poach its customers.
HP Printing revenue declined 5% year over year, software was down 2% year over year
First quarter non-GAAP diluted earnings per share slumped 11% to $0.82, down 11% from the prior year, but was above forecasted $0.68 – $0.71, which was due to” improved execution, improvement in our channel and go-to-market efforts”
“Our primary focus is to deliver on the full year outlook, and I feel good about the rest of the year,” said HP CEO Meg Whitman.
“We’ll be bringing a number of new programs and disruptive innovations to market in the coming quarters,” she promised.
“For HP, it’s a multi-year journey and this is just one step,” Forrester analyst Frank Gillett told Reuters “They have a long road ahead.”
Company shares rose 5% after the news.